D) Provisions, contingent liabilities and
contingent assets
Provisions represent liabilities for which the
amount or timing is uncertain. Provisions are
recognized when the company has a present
obligation (legal or constructive), as a result of
past events, and it is probable that an outflow
of resources, that can be reliably estimated,
will be required to settle such an obligation.
If the effect of the time value of money is
material, provisions are determined by
discounting the expected future cash flows to
net present value using an appropriate pre¬
tax discount rate that reflects current market
assessments of the time value of money
and, where appropriate, the risks specific
to the liability. Unwinding of the discount is
recognized in the statement of profit and loss
as a finance cost. Provisions are reviewed at
each reporting date and are adjusted to reflect
the current best estimate.
A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non
occurrence of one or more uncertain future
events beyond the control of the Company
or a present obligation that is not recognised
because it is not probable that an outflow
of resources will be required to settle the
obligation. A contingent liability also arises in
extremely rare cases where there is a liability
that cannot be recognised because it cannot
be measured reliably. The Company does not
recognize a contingent liability but discloses its
existence in the financial statements.
Contingent assets are not recognised but
disclosed in the financial statements when an
inflow of economic benefits is probable.
E) Employee benefits
i) Short term employee benefits
Employee benefits payable wholly within
twelve months of receiving employee
services are classified as short-term
employee benefits. These benefits
include salaries and wages, performance
incentives and compensated absences
which are expected to occur in next twelve
months. The undiscounted amount of
short-term employee benefits to be paid
in exchange for employee services is
recognised as an expense as the related
service is rendered by employees.
Defined contribution plan (Post
employment benefits)
A defined contribution such as Provident
Fund etc, are charged to statement of
profit & loss as incurred.
ii) Defined Post-employment benefits
Post employment and other long-term
benefits are recognized as an expense in
the statement of Profit and Loss of the
year in which the employees has rendered
services. The Expense is recognized at
the present value of the amount payable
determined using actuarial valuation
technique. Actual gain and losses in
respect of post employment and other
long term benefits are recognized in the
statement of Profit and Loss.
Payments to defined contribution
retirement benefits schemes are charged
as expenses as and when they fall
due. Actuarial gain/ loss pertaining to
gratuity and post separation benefits are
accounted for in OCI and deferred tax is
calculated on the same.
F) Earnings per share
i) Basic earnings per share
Basic earnings per share is calculated by
dividing the profit attributable to owners
of the Company by the weighted average
number of equity shares outstanding
during the financial year, adjusted for
bonus and split elements in equity shares
issued during the year.
ii) Diluted earnings per share
Diluted earnings per share adjusts the
figures used in the determination of basic
earnings per share to take into account
the after income tax effect of interest
and other financing costs associated with
dilutive potential equity shares, and the
weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of
all dilutive potential equity shares.
G) Taxes
i) Current income tax
Current income tax assets and liabilities
are measured at the amount expected
to be recovered from or paid to the
taxation authorities. The tax rates and
tax laws used to compute the amount are
those that are enacted or substantively
enacted, at the reporting date.
Current income tax relating to items
recognised outside the statement of
profit and loss is recognised either in
other comprehensive income or in
equity. Current tax items are recognised
in correlation to the underlying
transaction either in OCI or directly
in equity. Management periodically
evaluates positions taken in the tax
returns with respect to situations in
which applicable tax regulations are
subject to interpretation and establishes
provisions where appropriate.
ii) Deferred tax
Deferred tax is provided using the liability
method on temporary differences
between the tax bases of assets and
liabilities and their carrying amounts
for financial reporting purposes at the
reporting date. Deferred tax liabilities
are recognised for all taxable temporary
differences, except when it is probable
that the temporary differences will not
reverse in the foreseeable future.
Deferred tax assets are recognised for
all deductible temporary differences,
the carry forward of unused tax credits
and any unused tax losses. Deferred tax
assets are recognised to the extent that
it is probable that taxable profit will be
available against which the deductible
temporary differences, and the carry
forward of unused tax credits and unused
tax losses can be utilized.
The carrying amount of deferred tax
assets is reviewed at each reporting date
and reduced to the extent that it is no
longer probable that sufficient taxable
profit will be available to allow all or part
of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are
re-assessed at each reporting date and
are recognised to the extent that it has
become probable that future taxable
profits will allow the deferred tax asset to
be recovered.
Deferred tax relating to items recognised
outside the statement of profit and loss is
recognised either in other comprehensive
income or in equity.
Deferred tax assets and deferred tax
liabilities are offset if a legally enforceable
right exists to set off current tax assets
against current tax liabilities and the
deferred taxes relate to the same taxable
entity and the same taxation authority.
H) Borrowing costs
Borrowing costs directly attributable to the
acquisition, construction or production of
an asset that necessarily takes a substantial
period of time to get ready for its intended use
or sale are capitalised as part of the cost of the
asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing
costs consist of interest and other costs that an
entity incurs in connection with the borrowing
of funds.
Interest capitalization has been computed
on the average balance of Capital Work-
in-Progress (CWIP) and advances paid to
suppliers respectively, by applying the average
capitalization rate.
The total interest calculated Average
capitalization rate has been reduced by
the interest directly attributable to specific
borrowings, and the resultant amount has
been considered as interest capitalization
relating to general borrowings.
Borrowing cost also includes exchange
differences to the extent regarded as an
adjustment to the borrowing costs.
I) Government grants
Government grants are not recognised
until there is reasonable assurance that the
Company will comply with the conditions
attached to them and that the grants will be
received. Government grants are recognised in
the statement of profit and loss on a systematic
basis over the years in which the Company
recognises as expenses the related costs for
which the grants are intended to compensate
or when performance obligations are met. The
benefit of a government loan at a below-market
rate of interest and effect of this favourable
interest is treated as a government grant. The
Loan or assistance is initially recognised at fair
value and the government grant is measured as
the difference between proceeds received and
the fair value of the loan based on prevailing
market interest rates and recognised to the
statement of profit and loss immediately on
fulfilment of the performance obligations.
The loan is subsequently measured as per
the accounting policy applicable to financial
liabilities.
J) Inventories
Inventories are valued at the lower of cost and
net realisable value.
Costs incurred in bringing each product to its
present location and condition are accounted
for as follows:
• Raw materials and packing materials,
stores and spares parts and loose tools:
These are valued at lower of cost and net
realisable value. However, material and
other items held for use in production of
inventories are not written down below
cost if the finished products in which they
will be incorporated are expected to be
sold at or above cost. Cost includes cost
of purchase and other costs incurred
in bringing the inventories to their
present location and condition. Cost
is determined on first in first out (FIFO)
basis.
• Finished goods and work in progress:
These are valued at lower of cost and
net realisable value. Cost includes cost
of direct materials and labour and a
proportion of manufacturing overheads
based on the normal operating capacity.
Cost is determined on first in first out
(FIFO) basis.
• Stock-in-trade: These are valued at lower
of cost and net realisable value. Cost
includes cost of purchase and other costs
incurred in bringing the inventories to
their present location and condition. Cost
is determined on first in first out (FIFO)
basis.
• Scrap: These are valued at net realisable
value. Net realisable value is the
estimated selling price in the ordinary
course of business, less estimated costs
necessary to make the sale.
Obsolete inventories are identified and written
down to net realisable value. Slow moving and
defective inventories, if any, are identified and
provided to net realisable value.
K) Leases
The determination of whether an arrangement
is (or contains) a lease is based on the
substance of the arrangement at the inception
of the lease. The arrangement is, or contains,
a lease if fulfilment of the arrangement is
dependent on the use of a specific asset or
assets and the arrangement conveys a right to
use the asset or assets, even if that right is not
explicitly specified in an arrangement.
Lease liability is initially measured at the
present value of future lease payments.
Lease payments are discounted using the
interest rate implicit in the lease or, if not
readily determinable, using the incremental
borrowing rate. Lease liability is subsequently
remeasured by increasing the carrying amount
to reflect interest on the lease liability and
reducing the carrying amount to reflect the
lease payments made. A lease liability is
remeasured upon the occurrence of certain
events such as a change in the lease term or a
change in an index or rate used to determine
lease payments. The remeasurement normally
also adjusts the leased assets.
Leased Assets (Right-of-use Assets) The
Company's lease asset classes primarily
consist of leases for Land, Buildings, Plant
and Equipment and Vehicles. The Company
assesses whether a contract is or contains a
lease, at the inception of a contract. A contract
is, or contains, a lease if the contract conveys
the right to control the use of an identified
asset for a period of time in exchange for
consideration. To assess whether a contract
conveys the right to control the use of an
identified asset, the Company assesses
whether:
(i) the contract involves the use of an
identified asset
(ii) the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease and
(iii) the Company has the right to direct the
use of the asset. The right-of-use asset is
a lessee's right to use an asset over the life
of a lease. At the date of commencement
of the lease, the Company recognises a
right-of-use asset and a corresponding
lease liability for all lease arrangements
in which it is a lessee, except for leases of
low value assets. For these leases of low
value assets, the Company recognises
the lease payments as an operating
expense on a straight-line basis over the
term of the lease. The right-of-use assets
are initially recognised at cost, which
comprises the initial amount of the lease
liability adjusted for any lease payments
made at or prior to the commencement
date of the lease plus any initial direct
costs less any lease incentives. They
are subsequently measured at cost
less accumulated depreciation and
impairment losses, if any. Right-of-
use assets are depreciated from the
commencement date on a straight-line
basis over the shorter of the lease term
and useful life of the underlying asset.
L) Trade receivables
Trade receivables are amounts due from
customers for goods sold or services rendered
in the ordinary course of business. For Loss
allowance on Trade Receivables applying
the Simplified Approach -Lifetime expected
credit losses are recognized from initial
recognition of receivables. The Company uses
a provision matrix based on historical credit
loss experience, adjusted for forward-looking
estimates.
Receivables outstanding for more than 12
months — provisioned at 100%
Receivables outstanding for 6 to 12 months —
provisioned at 60%
Receivables outstanding for up to 6 months —
provisioned at 0% (or applicable rate)
M) Cash and cash equivalents
Cash and cash equivalent in the balance sheet
comprise cash at banks and in hand and short¬
term deposits with an original maturity of
three months or less, which are subject to an
insignificant risk of changes in value.
For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
short-term deposits, as defined above.
N) Cash dividend distributions to equity
holders
The Company recognises a liability to make
cash distributions to equity holders when the
distribution is authorised and the distribution
is no longer at the discretion of the Company.
As per the corporate laws in India, a
distribution is authorised when it is approved
by the shareholders. A corresponding amount
is recognised directly in equity.
O) Segment reporting
The Company is engaged in the manufacture
and sale of Wires(include product catagory).
The Company's operations constitute a single
business activity. The Board of Directors,
which is the Company's Chief Operating
Decision Maker (CODM), reviews the financial
information of the Company as a whole for
the purposes of assessing performance and
allocating resources. Accordingly, there are
no separate reportable operating segments as
defined under Ind AS 108, Operating Segments.
Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker (CODM).
Only those business activities are identified
as operating segment for which the operating
results are regularly reviewed by the CODM to
make decisions about resource allocation and
performance measurement.
P) Financial instruments
A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument of
another entity.
a) Financial assets
i) Initial recognition and measurement
Financial assets are classified, at initial
recognition, as subsequently measured
either at amortised cost, fair value
through other comprehensive income
(OCI) and fair value through profit or loss.
The classification of financial assets
at initial recognition depends on the
financial asset's contractual cash flow
characteristics and the Company's
business model for managing them. With
the exception of trade receivables that
do not contain a significant financing
component or for which the Company
has applied the practical expedient, the
Company initially measures a financial
asset at its fair value plus, in the case
of a financial asset not at fair value
through profit or loss, transaction costs.
Trade receivables that do not contain
a significant financing component or
for which the Company has applied the
practical expedient are measured at the
transaction price determined under Ind
AS 115.
In order for a financial asset to be
classified and measured at amortised
cost or fair value through OCI, it needs
to give rise to cash flows that are 'solely
payments of principal and interest (SPPI)'
on the principal amount outstanding.
This assessment is referred to as the SPPI
test and is performed at an instrument
level. Financial assets with cash flows
that are not SPPI are classified and
measured at fair value through profit or
loss, irrespective of the business model.
The Company's business model for
managing financial assets refers to how
it manages its financial assets in order
to generate cash flows. The business
model determines whether cash flows
will result from collecting contractual cash
flows, selling the financial assets, or both.
Financial assets classified and measured at
amortised cost are held within a business
model with the objective to hold financial
assets in order to collect contractual cash
flows while financial assets classified
and measured at fair value through OCI
are held within a business model with
the objective of both holding to collect
contractual cash flows and selling.
Purchases or sales of financial assets
that require delivery of assets within a
time frame established by regulation or
convention in the marketplace (regular
way trades) are recognised on the trade
date, i.e., the date that the Company
commits to purchase or sell the asset.
ii) Classification and subsequent measurement
Financial assets :
For the purpose of subsequent
measurement, financial assets are
classified into the following categories
upon initial recognition:
Financial assets at amortised cost - a
financial instrument is measured at
amortised cost if both the following
conditions are met:
• The asset is held within a business
model whose objective is to hold
assets for collecting contractual
cash flows, and
• Contractual terms of the asset
give rise on specified dates to cash
flows that are solely payments of
principal and interest (SPPI) on the
principal amount outstanding.
After initial measurement, such
financial assets are subsequently
measured at amortised cost using
the effective interest method.
Effective interest rate (EIR) is the rate
that exactly discounts estimated
future cash receipts through the
expected life of the financial asset
to the net carrying amount of the
financial assets. The future cash
flows include all other transaction
costs paid or received, premiums or
discounts if any, etc.
Investments in equity instruments
of subsidiaries and associates -
Investments in equity instruments
of subsidiaries, joint ventures and
associates are accounted for at
cost in accordance with Ind AS 27
Separate Financial Statements. On
disposal of these investments, the
difference between net disposal
proceeds and the carrying amount
are recognised in the statement of
profit and loss.
Financial assets at fair value
• Investments in equity instruments
other than above - All equity
investments in scope of IND AS
109 are measured at fair value.
Equity instruments which are held
for trading are generally classified
as at fair value through profit and
loss (FVTPL). For all other equity
instruments, the Company decides
to classify the same either as at fair
value through other comprehensive
income (FVOCI) or fair value
through profit and loss (FVTPL). The
Company makes such election on
an instrument-by-instrument basis.
The classification is made on initial
recognition and is irrevocable.
If the Company decides to classify
an equity instrument as at FVOCI,
then all fair value changes on the
instrument, excluding dividends,
are recognised in the other
comprehensive income (OCI). There
is no recycling of the amounts from
OCI to profit or loss, even on sale of
investment. However, the Company
may transfer the cumulative gain
or loss within equity. Dividends on
such investments are recognised
in profit or loss unless the dividend
clearly represents a recovery of part
of the cost of the investment.
Equity instruments included within
the FVTPL category are measured
at fair value with all changes
recognised in profit or loss.
• Derivative assets - All derivative
assets are measured at fair value
through profit and loss (FVTPL).
iii) De-recognition of financial assets
A financial asset is primarily de¬
recognised when the rights to receive
cash flows from the asset have expired
or the Company has transferred its rights
to receive cash flows from the asset.
Amortised cost is calculated by
considering any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR. The effect of EIR
amortisation is included as finance costs
in the statement of profit and loss. All
derivative liabilities are measured at fair
value through profit and loss (FVTPL).
Reclassification of financial assets
The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition,
no reclassification is made for financial
assets which are equity instruments
and financial liabilities. For financial
assets which are debt instruments, a
reclassification is made only if there
is a change in the business model for
managing those assets. Changes to
the business model are expected to
be infrequent. The Company's senior
management determines change in the
business model as a result of external or
internal changes which are significant to
the Company's operations. Such changes
are evident to external parties. A change
in the business model occurs when the
Company either begins or ceases to
perform an activity that is significant
to its operations. If the Company
reclassifies financial assets, it applies
the reclassification prospectively from
the reclassification date which is the first
day of the immediately next reporting
period following the change in business
model. The Company does not restate
any previously recognised gains, losses
(including impairment gains or losses) or
interest.
b) Financial liabilities
i) Financial liabilities at fair value through
profit and loss
Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition as at
fair value through profit or loss. Financial
liabilities are classified as held for trading
if they are incurred for the purpose
of repurchasing in the near term. This
category also includes derivative financial
instruments entered into by the Company
that are not designated as hedging
instruments in hedge relationships as
defined by Ind AS 109.
Gains or losses on liabilities held for
trading are recognised in the profit or
loss.
Financial liabilities designated upon
initial recognition at fair value through
profit or loss are designated as such at
the initial date of recognition, and only if
the criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value
gains/ losses attributable to changes in
own credit risk are recognized in OCI.
These gains/ loss are not subsequently
transferred to profit or loss. However, the
Company may transfer the cumulative
gain or loss within equity. All other
changes in fair value of such liability are
recognised in the statement of profit and
loss.
ii) Subsequent measurement
After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortised cost using the
effective interest rate (EIR) method. Gains
and losses are recognised in statement
of profit and loss when the liabilities are
derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the EIR. The EIR
amortisation is included as finance costs
in the statement of profit and loss.
iii) Derecognition of financial liabilities
A financial liability is derecognised
when the obligation under the liability
is discharged or cancelled or expires.
When an existing financial liability is
replaced by another from the same
lender on substantially different terms,
or the terms of an existing liability
are substantially modified, such an
exchange or modification is treated as
the derecognition of the original liability
and the recognition of a new liability.
The difference in the respective carrying
amounts is recognised in the statement
of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities
are offset and the net amount is
reported in the balance sheet if there
is a currently enforceable legal right to
offset the recognised amounts and there
is an intention to settle on a net basis, to
realize the assets and settle the liabilities
simultaneously.
Q) Impairment of financial assets
All financial assets except for those at FVTPL
are subject to review for impairment at each
reporting date to identify whether there is any
objective evidence that a financial asset or a
group of financial assets is impaired. Different
criteria to determine impairment are applied
for each category of financial assets.
For Loss allowance on Trade Receivables
applying the Simplified Approach -Lifetime
expected credit losses are recognized from
initial recognition of receivables. The Company
uses a provision matrix based on historical
credit loss experience, adjusted for forward¬
looking estimates.
The provision rates applied are:
Receivables outstanding for more than 12
months — provisioned at 100%
Receivables outstanding for 6 to 12 months —
provisioned at 60%
Receivables outstanding for up to 6 months —
provisioned at 0% (or applicable rate)
R) Cash Flow Statement
Cash flows are reported using the indirect
method, whereby profit for the period is
adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals
of past or future operating cash receipts or
payments and item of income or expenses
associated with investing or financing cash
flows. The cash flows from operating, investing
and financing activities of the Company are
segregated.
S) Exceptional items
When the items of income and expense within
profit or loss from ordinary activities are of such
size, nature or incidence that their disclosure
is relevant to explain the performance of
the Company for the period, the nature and
amount of such items are disclosed separately
as exceptional item by the Company.
T) Others
Stores, Spares, Chemical, Acid, Dies & Other
Items purchased by the Company are directly
booked as expenditure, hence no stock records
are being maintained for the same. However,
closing stock of these items has been taken as
per physical verification the year end.
4.1 Initially, the Company planned to develop a production capacity of 3.46 lakh M.T. at Dadri, which was subsequently
expanded to 6.00 lakh M.T. Out of the revised capacity, development of 4.20 lakh M.T. has been completed as
of March 31, 2026. Commercial operations have already commenced for 3.60 lakh M.T. out of the completed
capacity of 4.20 lakh M.T., while commercial production for the remaining 0.60 lakh M.T. is yet to commence. The
development of the balance planned production capacity of 1.80 lakh M.T. is currently in progress.
4.2 The means of finance for the Dadri project of the Company comprise the term loan taken from the State Bank of
India & HDFC Bank Limited, promoter's contribution and internal accruals. The amount of Capital Work in Progress
includes the amount of finance cost incurred till the end of the year, for security and repayments terms please
refer note no. 21 & 24.
19.2 Terms/rights attached to shares of the Company:
i. During the financial year 2024-25, the Company successfully completed its Initial Public Offering (IPO) of 29101562
equity shares of face value ' 5 each at an issue price of ' 256 per share, aggregating to ' 7,450.00 Million.
The equity shares of the Company were listed on the BSE and NSE on July 10, 2024.
The IPO proceeds, net of issue-related expenses, have been utilized in accordance with the objects of the issue as
stated in the prospectus.
ii. The Company has only one class of equity shares referred to as equity shares having a par value of Rs. 5 each,
holder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders
of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
iii. There are no calls unpaid and no forfeiture of shares.
19.6 i. The change in promoter shareholding during the pervious year is attributable to the fresh issue of equity
shares by the Company.
ii. No equity class of Share have been issued for consideration other than cash by the Company during the
period of five years immediately preceding the current financial year.
However, certain bonus shares have been issued during the 2023-24.
iii. In the financial year 2020-21, the company executed Buy-Back of 866600 equity shares of Rs. 10 each at a
Buy-Back price of Rs. 10 each.
Nature and purpose of reserves
(a) Securities Premium Account : Amount received in excess of face value of the equity shares is recognised in
Securities Premium Account.
(b) Retained Earnings: Retained earnings are the profits that the Company has earned till date less, transferred
to Capital Redemption Reserve, dividends or other distributions to shareholders if any.
(c) Capital Redemption Reserve: Capital Redemption Reserve created under the provisions of the Companies
Act, 2013 upon Buy Back of Shares and redemption of preference shares by the Company.
(d) Other Comprehensive Income( OCI ) : OCI represents balance arising on account of gain/(loss) booked on
re-measurement of defined benefit plans in accordance with Ind AS-19.
21.1 Repayment terms and security disclosure for the outstanding long-term borrowings :
a From Bank
Term Loan
1. The Company has obtained the sanction of term loan towards the phase -II project at Dadri Gautam
Budh Nagar (U.P.) from State Bank of India (SBI) and HDFC Bank Limited (HDFC) of Rs. 500 Million each
in the FY 2024-25.
Previously, the Company had obtained sanction of term loan for phase -I project at Dadri of Rs 1,000
million each from SBI and HDFC, the outstanding loan balance with HDFC stand at Rs. 150.06 Million
and the remaining dues towards phase-I have been fully repaid by the Company.
- A first mortgage and charge on all borrower's immovable properties (owned and/or leased),
present and future, together with all structures and appurtenances thereon, present and future,
pertaining to the Dadri unit located at N T P C Road, Dadri, Gautam Budh Nagar, U.P.
- A first charge {by way of hypothecation} on all borrower's tangible movable assets, including
movable plant and machinery, machinery spares, tools and accessories, furniture, fixtures,
vehicles and all other movable assets, , present and future pertaining to the Dadri unit located at
N T P C Road, Dadri, Gautam Budh Nagar, U.P.
- A second pari passu charge on all borrower's current assets and receivables including book debts,
operating cash flows, receivables of whatsoever nature and wherever arising, present and future
pertaining to the Company;
- A second pari passu charge on all borrower's immovable properties and movable assets, where
existing lenders have first charge.
- Corporate guarantee of group companies & personal guarantee from promoters.
b Vehicle Loan
All the vehicle loans are secured by way of hypothecation of vehicle purchased from loan proceeds.
24.1 The Company is availing the working capital facility, funded and non funded, under the consortium arrangement
in which State Bank of India is a lead bankers and Canara bank, HDFC Bank Ltd. & ICICI Bank Limited are Member
Banker and Facility Secured with first pari-pasu charge-Hypothecation of Raw Material, work-in-process, &
finished goods, book debts & other current assets, both present and future all movable fixed sssets of Borrower,
both present and future,and B-3, B-5, B-6, Loni Road Site-2, Ghaziabad, B-35, Rajendra Nagar, Industrial Estate
,Ghaziabad, UP India and second pari-pasu charge of Industrial property situated at Village Bishodo Dadri. Further
State Bank of India and HDFC Bank Ltd. have first pari pasu charge of Industrial property situated at Village Bishodo
Dadri.
And personal guarantee of promoters Sh. Arun Gupta, Smt. Anita Gupta & Sh. Pranav Bansal and corporate
guarantee of Bansal High Carbons Private Limited & Balaji Wires Private Limited.
26.1 Disclosures as required under Section 22 of the Micro, Small and Medium Enterprises Development (MSMED) Act,
2006 due to Micro, Small and Medium Enterprises
The Company has received Micro, Small and Medium Enterprises (MSME) declaration from vendors and disclosure
under section 22 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 has been made.
Parties identified by the company as Micro, Small and Medium Enterprises are relied upon by the Auditors.
However, the Company has never, so far, received any claim or have any pending claim for outstanding amount
due to MSME as on the 31st March 2026 and 31st March 2025.
38.1 A fire incident occurred in the C Shed in the Dadri Unit of the company on October 2, 2025. The Shed was under
trial at the time of said incident. However, the entire plant was covered under fire insurance with SBI General
Insurance Company Limited, except, the inventory of finished goods stored at the location. The assessment of
the value of insurance claim has not been finalized by the insurance company for capital assets which are either
lost or not in usable condition due to repairs as of the date of approval of the financial statements. As specified
in Insurance Policy, these assets are either replaceable or repairable under insurance claim. Consequently,
depreciation on such plant and machinery situated in c-shed has not been charged in the financial statements.
Further, the management estimates an amount of Rs. 15.4 millions as loss on inventory however no physical
verification has been made by the management of the company due to restrictions in the flre area of the premises
by the Insurance company. The management assures that there was no operational disruption, and production at
the other part of unit which continues without interruption.
38.2 On November 21,2025, the Government of India has implemented four new Labour Codes (the " Labour Codes"),
including the Code on Wages, 2019, which amended the definition of "Wages". The Company carried out the
actuarial valuation of gratuity and recorded a past service cost of Rs. 13.82 million for the year ended March 31,
2026.
Notes:
(a) The discount rate is based on the prevailing market yield of Indian Government bonds as at the balance
sheet date for the estimated terms of obligations.
(b) The estimates of future salary increases considered takes into account the inflation, seniority, promotion
and other relevant factors.
(c) We have used the Projected Unit Credit (PUC) actuarial method to assess the plan's liabilities allowing for
retirement, death-in-service and withdrawal and also compensated absence while in service.
The above sensitivity analysis is based on a change an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defend benefit obligation to significant actuarial assumptions the same
method (present value of the defined benefit obligation calculated with the projected unit credit method at
the end of the reporting period) has been applied which was applied while calculating the defined benefit
obligation liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change when as
compared to previous year
(vii) The plan exposes the Company to actuarial risks such as interest rate risk and inflation risk.
Interest rate risk
The present value of the defined benefit liability is calculated using a discount rate determined by reference
to market yields of risk free securities.
Inflation risk
A significant proportion of the defined benefit liability is linked to inflation. An increase in the inflation rate
will increase the Company's liability.
B Fair values hierarchy
The fair value of financial instruments as referred to in note (A) above has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable
inputs [Level 3 measurements].
The categories used are as follows:
Level 1: Quoted prices for identical instruments in an active market;
Level 2: Directly (i.e., as prices) or indirectly (i.e., derived from prices) observable market inputs, other than Level
1 inputs; and
Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined
in whole or in part using a net asset value or valuation model based on assumptions that are neither supported
by prices from observable current market transactions in the same instrument nor are they based on available
market data.
B.1 Financial assets and liabilities measured at fair value - recurring fair value measurements
On the adoption of IndAS for first time, Company has not measured its Assets and Liabilities at Fair Value and the
same policy has been adopted by the company for the year.
(a) The carrying amount loans, investment, trade receivables, other bank balances, cash and cash equivalents,
trade payables and other financial liabilities which are short term in nature are considered to same as their
fair values.
(b) All the long term borrowing facilities availed by the Company from unrelated parties are fixed rate facilities
which are not subject to changes in underlying interest rate indices. Current borrowing rate is similar to the
fixed rate of interest on these facilities, hence fair value is not significantly different from the carrying value.
(c) All financial assets and financial liabilities are classified as level 3 fair values in the fair value hierarchy due to
the use of unobservable inputs, including own credit risk.
C Financial risk management
Risk management
The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors
has overall responsibility for the establishment and oversight of the Company's risk management framework.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the
related impact in the financial statements.
The Company's risk management is carried out under policies approved by the board of directors. The board of
directors provides written principles for overall risk management, as well as policies covering specific areas, such
as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity.
C.1 Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure
to credit risk is influenced mainly by investments in redeemable preference shares, cash and cash equivalents,
trade receivables, derivative financial instruments and other financial assets measured at amortised cost. The
Company continuously monitors defaults of customers and other counterparties and incorporates this information
into its credit risk controls.
(a) Credit risk management
The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating
is performed for each class of financial instruments with different characteristics. The Company assigns the
following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific
to the class of financial assets.
(i) Low credit risk
(ii) Moderate credit risk
(iii) High credit risk
Based on business environment in which the Company operates, a default on a financial asset is considered
when the counter party fails to make payments within the agreed time period as per contract. Loss rates
reflecting defaults are based on actual credit loss experience and considering differences between current
and historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring
bankruptcy or a litigation decided against the Company. The Company continues to engage with parties
whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in
statement of profit and loss.
Cash and cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated
banks and diversifying bank deposits and accounts in different banks across the country.
Derivative financial instruments
Derivative financial instruments are considered to have low credit risk since the contracts are with reputable
financial institutions.
Trade receivables
Trade receivables are generally unsecured and non-interest bearing. There is no significant concentration of
credit risk. The Company's credit risk management policy in relation to trade receivables involves periodically
assessing the financial reliability of customers, taking into account their financial position, past experience
and other factors. The utilization of credit limit is regularly monitored. The Company's credit risk is mainly
confined to the risk of customers defaulting against credit sales made. Outstanding trade receivables are
regularly monitored by credit monitoring company. In respect of trade receivables, the Company recognises
a provision for lifetime expected credit losses after evaluating the individual probabilities of default of its
customers which are duly based on the inputs received from the marketing teams of the Company.
Other financial assets measured at amortised cost
Loans and other financial assets are considered to have low credit risk since there is a low risk of default
by the counterparties owing to their strong capacity to meet contractual cash flow obligations in the near
term. Credit risk related to these other financial assets is managed by monitoring the recoverability of such
amounts continuously, while at the same time internal control system in place ensure the amounts are within
defined limits.
(b) Expected credit losses for financial assets
(i) Financial assets (other than trade receivables)
Company provides for expected credit losses on loans other than trade receivables by assessing individual
financial instruments for expectation of any credit losses.
- For cash & cash equivalents, other bank balances and derivative financial instruments- Since the
Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and
cash equivalents, derivative financial instruments, other bank balances and bank deposits is evaluated
as very low.
- For loans comprising security deposits paid - Credit risk is considered low because the Company is in
possession of the underlying asset.
- For other financial assets - Credit risk is evaluated based on Company knowledge of the credit worthiness
of those parties and loss allowance is measured. For such financial assets, the Company policy is to
provide for 12 month expected credit losses upon initial recognition and provide for lifetime expected
credit losses upon significant increase in credit risk.
(ii) Expected credit loss for trade receivables under simplified approach
As at 31 March 2026 and 31 March 2025, the Company considered the individual probabilities of default of
its financial assets (other than trade receivables) and determined that in respect of counterparties with low
credit risk, no default events are considered to be possible within the 12 months after the reporting date.
In respect of trade receivables, the Company measures the loss allowance at an amount equal to lifetime
expected credit losses using a simplified approach.
C.2 Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company approach to
managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they
are due.
Management monitors rolling forecasts of the Company liquidity position and cash and cash equivalents on the
basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity
operates.
C.3 Market risk
(a) Interest rate risk
(i) Financial liabilities
The Company's policy is to minimise interest rate cash flow risk exposures on external financing. As at
31 March 2026, the Company is not exposed to changes in interest rates as all bank borrowings carry
fixed interest rates. The Company's investments in fixed deposits carry fixed interest rates.
(ii) Financial assets
The Company's loan to a employees, other parties and deposits with banks are carried at amortised
cost and are fixed rate instruments. They are, therefore, not subject to interest rate risk as defined
in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a
change in market interest rates.
(b) Foreign currency risk
The Company is exposed to foreign exchange risk in the normal course of its business. Multiple currency
exposures arise from commercial transactions like sales, purchases, borrowings, recognized financial assets
and liabilities (monetary items). Certain transactions of the Company act as natural hedge as a portion of both
assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign
exchange risk, the Company adopts the policy of selective hedging based on risk perception of management.
Foreign exchange hedging contracts are carried at fair value. Foreign currency exposures that are not hedged
by derivative instruments outstanding as on the balance sheet date are as under:
46 CAPITAL MANAGEMENT
The Company's capital management objectives are to ensure the long term sustenance of the Company as a going
concern while maintaining healthy capital ratios, strong external credit rating and to maximise the return for
stakeholders.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure,
the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue
new shares or sell assets to reduce debt. The Company also judiciously manages its capital allocations towards
different various purposes viz. sustenance, expansion, strategic acquisition/ initiatives and/ or to monetize market
opportunities.
50 CONTINGENT LIABILITIES AND COMMITMENTS
(A) Contingent liabilities
a. The Company has given bank guarantees amounting to Rs. 120.24 Millions at the end of the year (previous
year 92.60 Million).These guarantees are taken for the normal course of business of the Company. Moreover,
the company has not incurred any liabilities as of reporting date related to these guarantees. However,
they represents optional future obligation that may arise if the counter party fails to fulfil its contractual
obligations.
b. Demand has been raised by the GST department which is under dispute. Based on management's assessment,
no provision is considered necessary. The amount under dispute is Rs. 9.52 Millions.
C As at the end of the year, the Company has extended corporate guarantees aggregating to Rs. 250.00 million
on behalf of its subsidiary company for availing purchase invoice factoring facilities.
(B) Commitments
a. Capital Commitments : As at 31 March 2026, the estimated capital commitment, not provided for in the
accounts however net of advances, of Rs. 81.54 Millions (previous year Rs. 449.15 Millions)
b. The company has imported certain capital goods items under the export promotion capital goods scheme
(EPCG) to utilize the benefit of a NIL or concessional import custom duty rates. These benefits are subject to
certain future export obligation within the stipulated years. Such Export obligation at year end aggregated to
Rs. 2153.27 Million (previous year Rs. 1945.89 Million).
51 SEGMENT INFORMATION
Segments to be identified in accordance with Accounting Standard on Segment Reporting (Ind AS 108) taking into
account the organization structures well as differential risks and returns of these segments.
The Company is primarily engaged in the business of manufacturing of Wires . Accordingly, the entire operations of
the Company are governed by the same set of risk and rewards and thus, it operates in a single primary segment.
52 INFORMATION UNDER SECTION 186(4) OF THE COMPANIES ACT, 2013
There are no investments or loan given or guarantee provided or security given by the Company other than the
investments and loans stated under note 6 and note 7 in these financial statements, which have been made
predominantly for the purpose of business.
Explanation of variance exceeding 25%:-
1. The increase in the Debt Service Coverage Ratio is primarily attributable to growth in revenue during the
period.
2. The decrease in Return on Equity is primarily due to an increase in average shareholders' equity during the
period.
3. Trade Payable Turnover Ratio has been decreased due to increases in the average trade payables during the
period.
54 OTHER STATUTORY INFORMATION
54.01 The Company does not have any transactions and outstanding balances during the current as well previous year
with companies struck off under section 248 of The Companies Act, 2013 or section 560 of Companies Act, 1956.
54.02 Previous year's figures have been regrouped/reclassified wherever necessary to confirm to current period
classification.
54.03 The Company do not have any benami property, where any proceeding has been initiated or pending against the
Company for holding any benami property.
54.04 The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies
(ROC) beyond the statutory period.
54.05 The Company has not traded or invested in crypto currency or virtual currency during the financial year.
54.06 The Company has not any excluded such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under The Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of The Income Tax Act, 1961.
54.07 The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as
defined under The Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.
54.08 The Company has not received any fund from any person or any entity, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by a or
on behalf of the Funding Party (Ultimate Beneficiaries); or
ii. Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
54.09 The Company has not advanced or loaned or invested funds to any person or any entity, including foreign entities
(Intermediaries) with the understanding that the intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by a or
on behalf of the Company (Ultimate Beneficiaries); or
ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
54.10 PPE and Inventory lying with the job-worker at the year end is Rs. 424.1 (PY 473.9) Million and 540.34 (PY 945.04)
Million respectively.
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